MoviePass, the braindead idea of the decade

Discussion in 'Stocks' started by Pekelo, Jun 26, 2018.

  1. Pekelo

    Pekelo

    Oh how I wish these idiots were public so I could short the shit out of them. Well there is a public company behind them, Helios but they are a penny stock, no surprise there.

    "MoviePass, with shares of parent company Helios and Matheson Analytics hitting a new low of 24 cents apiece on Tuesday, down from $10 earlier this year"

    Currently they are burning through 40M per month and soon they need an additional 1.2B cash infusion, but what is that in VC circles? A rounding error, I say.

    Here is an interesting thread where the CEO is trying to explain how they are going to break even. Mind you, the whole idea behind the business is structurally bad, it is just not going to work.



    Best question:

    "Hi Mitch. I'm a subscriber and I love Moviepass - the product. However, I'm also a shareholder of Moviepass the stock which is trading near 25 cents and an all-time low. A CEO'S 1st responsibility of a public company is to generate shareholder value. So far, investors in Moviepass stock have all lost a ton of money while at the same time, Ted Farnswroth the CEO, earned a salary of $10M last year. How can you justify Ted's salary while the commons investors and believers in Moviepass are getting hurt so bad?"
     
    Last edited: Jun 26, 2018
  2. DaveV

    DaveV

    You may be interested in a podcast that NPR's Planet Money did on MoviePass 4 days ago. Very entertaining. The MoviePass guys weren't as mad as one might assume. They just got way more subscribers than anticipated, and are now trying to figure out how to monetize that large subscriber base.

     
  3. Pekelo

    Pekelo

    Here is the main problem:

    " HMNY is selling stock constantly just to pay for their subscribers to watch movies. "

    MP is a fantastic deal for a frequent moviegoer, not so much for the company, after all cinemas want to get paid somehow. For a non-frequent person like me, I am not going to subscribe because I am not paying 120 bucks for going to the movies 1-2 times a year. So it is a short of Catch 22 of a very bad business idea.

    Oh and they got into the movie making business starting with Gotti... :)

    https://seekingalpha.com/article/4183215-helios-matheson-meltdown-full-swing

    HMNY's (MP's parent company) chart looks like Bitcoin's there was an incredible 1 month runup last year from 3 bucks to 39, and now at 30 cents...

    And now they have competition with AMC introducing a similar deal...
     
    Last edited: Jun 27, 2018
  4. zdreg

    zdreg

    your remark is just short of being sour grapes for not shorting the stock from its peak $30 down
    to the pennies level.

    where you rip van winkle during the entire down move? I admit I was.
     
    Last edited: Jun 27, 2018
  5. Same company as earntootrade? Helios!
     
  6. Pekelo

    Pekelo

    For sure. I wasn't even aware of this company until yesterday. But if you check out their chart, they have had these huge crashes like 5 times in the last 5 years and they recovered and more (just like Bitcoin). So who knows?

    They are planning a reverse split (up to 250 times) so it will be shortable again soon.
     
  7. JSOP

    JSOP

  8. zdreg

    zdreg

  9. Pekelo

    Pekelo

    The link just means more competition, and that is hardly good news. Movies are generally shit and we live in the golden age of TV and binge watching.
     
  10. Pekelo

    Pekelo

    A very good discussion:

     
    #10     Jul 2, 2018